Big CHANGE in Deducting Taxes in 2018
If you itemize, the new limit on the deduction for taxes is a total of $10,000 for a combination of:
- Real estate taxes that are not related to business
- State and local INCOME taxes OR sales tax
YOU MAY WANT TO PREPAY THE TAXES DUE IN 2018 BEFORE THE END OF THIS YEAR TO GET THAT DEDUCTION ON YOUR 2017 TAX RETURN.
If you are paying AMT (Alternative Minimum Tax) then this may not be helpful. In addition, if you pay your real estate tax through an escrow account with a mortgage payment then you may want to check with your mortgage lender as well.